“Both leaders expressed pleasure in Brunei’s interest to
participate in the economic corridors in Malaysia and recognised the
potential for increased cooperation between both countries, especially
in Sabah and Sarawak, in such areas as agriculture, halal products and
palm oil production,” said a joint statement issued to Malaysian
journalists at the conclusion of the closed-door annual meeting at the
Istana Nurul Iman, here.

The annual consultation also saw the signing of an Avoidance of
Double Taxation Agreement (DTA) to facilitate greater bilateral
economic collaboration, including in energy-related activities.

Under the treaty, the maximum rates of withholding tax are 10 per
cent respectively on dividends, individual or company, royalties and
fees for technical services.

The two leaders also underscored the significance of continuing
cooperation in the transportation sector to further promote trade and
investment linkages as well as tourism between both countries,
including in the Brunei, Indonesia, Malaysia, Philippines-East Asean
Growth Area (BIMP-EAGA).

In expressing satisfaction with current efforts to promote
tourism, particularly between Brunei and Sabah as well as Brunei and
Sarawak, they welcomed the recent code-share agreement between Royal
Brunei Airlines (RBA) and Malaysia Airlines, which underlies their
commitment towards tourism development between the peoples of the two
countries.

The joint statement also said that Najib and the sultan reiterated
the significance of the Exchange of Letters, signed on March 16 last
year, over overlapping maritime and land border issues, which marked a
historic occasion for Brunei and Malaysia.

“Both leaders reaffirmed their commitment to work together towards
the expeditious implementation of elements agreed in the document,” it
said, adding that the signing served as a testament to the strong ties
between the two countries in elevating existing friendship and
cooperation to a strategic partnership.

The meeting, which discussed a broad range of regional and
international issues of mutual concern, reaffirmed the need to work
closely in dressing the current global economic crisis and pandemic
diseases, including the Influenza A(H1N1).

In commending the close partnership between the two countries in
promoting peace, security and prosperity in the regional and
international arena, the leaders expressed their satisfaction on the
outcome of the consultation and believed that such a mechanism
strengthened bilateral relations and cooperation.